Construction loan.
Building your dream home has its own unique challenges. A construction loan is designed to pay for the build in stages, keeping costs down while the home is built.
Benefits.
- Designed to be paid out in stages throughout your build.
- Conditional approval¹ so you have time to plan your build.
- Reduce your outgoings with interest only4 or no repayments3 during the construction period.
- Start repaying the loan when the construction is finished.
How it works.
You can borrow up to 90%
Valuation
Payments are made in stages
Repaying the loan
How much can I borrow?
If you need a loan to build a new home, the amount you can borrow depends on the value of your home, the type of your construction contract and your ability to repay the money.
Depending on the amount you’d like to borrow, you may need to get valuations at different stages of the project.
A word of caution: cost overruns are common during building work, so keep track of your budget as the project goes on. That way you can make adjustments as you go to make sure you can afford to finish.
Types of construction contracts you can get a Westpac construction home loan for.
Current rate.
For home loans with less than 20% equity, a low equity margin may apply, see low equity margins explained for more details on how this is applied.
Interest rates are subject to change without notice.
If you don’t pay amounts when they’re due, your home loan account may exceed its limit and the interest rate applied to the over limit amount will be your annual interest rate plus an additional 5% p.a.
Calculators.
Learn more about your options.
Get in touch.
Meet with an expert
Our Home Loan Experts can come to you, when it suits you best.
Things you should know.
1 Conditional approval requires a credit check for all applicants, confirmation of the details provided in your application and responsible lending inquiries. Other conditions may also apply depending on the nature of your application.
2 High LVR loans are only permitted for a new build with a single fixed price contract that specifies a completed, ready to live in property. We may require you to protect against loss of deposit, non-completion and workmanship risks with a satisfactory insurance product. A low equity margin may apply.
3 Interest costs will be added to your loan balance within the approved total limit of the loan and you will therefore pay more in interest in the long term. You must start paying principal and interest on the loan within 12 months of the first drawdown.
4 There are no principal payments required during the build process. With an interest only loan, you’re repaying only the interest amount as it accrues on your outstanding balance, and none of the principal. An interest only loan will cost you more interest in the long term because you're not paying off any of the principal during your interest only period. You must start paying principal and interest on the loan within 12 months of the first drawdown.
Interest rates are subject to change without notice. Westpac's home loan lending criteria, terms and conditions apply. A low equity margin may apply.
Documents and fees
- Choices Home Loan Summary - Sample
- Choices Home Loan Terms and Conditions
- Transaction and Service Fees
- Westpac General Terms and Conditions
View terms and conditions for all our home lending products here.